The employers' group Ibec has called for measures to be introduced in the Budget which would ensure high net worth individuals pay some tax at the end of each year.
Speaking at an Oireachtas committee yesterday, the group's director of economic policy Danny McCoy said it would not be opposed to the use of caps on tax relief schemes for the purpose of capturing high earners in the tax net.
Expanding further, in a written submission to the Joint Committee on Finance and Public Service, Ibec said it would "welcome provisions that would prevent high earning or high net worth individuals from reducing their tax liability to zero".
The group even suggested that "a catch-all provision could be introduced which would prescribe a minimum rate of taxation to apply when the effect of all reliefs are taken into account".
However, it warned against introducing a regime that would act as a disincentive to investment in Ireland, saying consideration should be given to experience elsewhere.
The move follows signals from Minister for Finance Brian Cowen that the upcoming Budget will contain provisions aimed at bringing all high-earning individuals into the tax net.
The Dáil heard last month that almost 30 people earning incomes over €1 million - and 77 people earning between €500,000 and €1 million - paid little or no tax in 2000/1.
Ibec has also called for termination of certain tax reliefs which have either "run their course" or are contributing to the "unbalancing" of the economy.
Paul Sweeney, economic adviser to the Irish Congress of Trade Unions, said incentivising the construction industry at a time when it was overheating was "crazy". Section 23 tax relief for rented residential properties helped to create a number of "slums" in Dublin, he said.
